The government has introduced new guidelines for central government employees under the National Pension System (NPS) who wish to take voluntary retirement. According to the Department of Pension
and Pensioners Welfare (DoP&PW), employees who have completed 20 years of regular service can apply for voluntary retirement by giving a three-month notice to the appointing authority. This new rule was issued on 11 October 2024.
Process and Conditions for Voluntary Retirement
If an employee wants to retire after 20 years of service, they must submit a notice to their appointing authority. If the authority does not reject the request, the retirement will automatically take effect after the notice period ends.
In cases where employees wish to retire earlier than the three-month notice period, they must submit a written request to shorten the notice period. Approval of the appointing authority is required to reduce this time.
Once an employee has given notice of voluntary retirement, they cannot withdraw it unless the authority agrees. To cancel the retirement request, employees must apply 15 days before the intended retirement date.
Benefits Under the New Rules
Employees who opt for voluntary retirement will receive all the benefits under the PFRDA Regulations 2015, similar to regular retirees.
These include access to the same facilities and financial benefits. Employees also have the option to continue their individual pension account or defer the benefits under the NPS, as per their choice.
However, these rules do not apply to employees who retire under the Special Voluntary Retirement Scheme due to surplus staffing or those who join public sector undertakings or autonomous bodies after leaving government service.